The European Investment Bank (EIB) has announced it will provide $171 million for the construction of Line No. 3 on the Hanoi Metro network and the purchase of new trains for the route. Once operational, the 12.5-km line with 12 stations will transform public transport in Vietnam’s capital, improving travel time, reducing transport costs, and cutting pollution.

The increased backing from the EU’s long-term lending institution was confirmed in Hanoi by Mr. Jonathan Taylor, EIB’s Vice President responsible for Asia, on January 10.

“New investment to improve sustainable public transport and to reduce harmful emissions is essential for world cities,” he said following a visit to the urban railway line. “Daily travel for hundreds of thousands of people will be transformed by expanding urban transport in the capital and the construction of this new line. The financing agreed with the EIB, the Bank of the European Union, demonstrates both Europe’s commitment to support world class climate-related investment across Asia and its strong engagement in Vietnam.”

“The loan for the Hanoi Metro will contribute greatly to a project that will reduce traffic congestion and pollution in a city that has grown significantly in recent years,” he went on. “Seeing construction first hand shows the technical ambition and scale of this impressive metro project.”

Ahead of a formal ceremony attended by the Deputy Chairman of the People’s Committee of Hanoi, the EIB Delegation visited the Hanoi Metro to see construction of new stations and the line first hand.

“The EIB support for transformational investment in Hanoi demonstrates the close cooperation between the EU and Vietnam,” said Ambassador H.E. Bruno Angelet, Head of the Delegation of the EU to Vietnam. “Once the new metro is complete, transport in the city will be transformed and residents will benefit from quicker journeys and reduced pollution.”

Vice President Taylor is currently leading a high-level EIB Delegation on a three day visit to Vietnam. The EIB is the world’s largest international public bank and is owned by the 28 EU member states.

Transport financing by the EIB in Vietnam is supporting the construction of new urban railway infrastructure in Hanoi and Ho Chi Minh City.

Since 1998, the bank has provided more than $850 million in investment to Vietnam.